Posted on Friday, August 10, 2012 under Rentals.

If you are considering moving to the Big Apple, you most likely will need a place to live. Maybe you would move in a small studio by yourself, or you might choose to have a roommate and share an apartment in a luxury doorman building. Either way,  you might need to hire a good real estate agent  to find you an apartment. Therefore. you might want to have an answer to the question How do broker fees work in NYC?

Standard broker commission in NYC is %15 of the annual rent. For instance, if your budget is $3000 per month, the brokers commission you will need to pay is in the amount of $5400. Yes, this can be an overwhelming amount of money and you can always try to negotiate with the broker to see if you can get a discount.  Some real estate agents might be willing to reduce the brokers commission down to 1 month depending on their companys policy.

How do broker fees work in NYC if I find an apartment on my own?

If you find a place on your own, either via a friend. or getting in touch with a leasing agent at a building directly, then you would not have to pay a brokers fee. This of course has changed a bit recently. Small, family real estate owners have originated with new ways to generate income ,and they have gotten real estate licenses, so now they can function as brokers as well. A couple of managements which used to heavily rely on brokers to bring them business utilize a new approach. Besides being a landlord, they act as their own broker and charge a fee as well. One of those landlords is Big Apple management. They will charge you a brokers fee even if you have no real estate agent working on your end.

How do broker fees work in NYC if you have a real estate license?

If you have a real estate license and operate as a real estate agent. you might still have to pay a brokers commission. Some apartments are listed by agents who have exclusive rights over the property and you would not be able to lease the apartment without having the agent involved in the transaction. As someone who holds a real estate license, you might be able to co-broke the listing with the exclusive agent and pay only reduced brokers fee.

How do broker fees work in NYC if you do not want to pay broker fees?

Well, this is a tough one to answer. You can always try to find a place on your own and go to leasing offices in buildings where you can rent directly from the owner. However, be aware of scam artists and brokers who list their properties in the owners section on websites like craigslist for instance. There have been examples where people would approach a listing holder they have found on the by owners section on craigslist, to eventually realize that this is a real estate agent with malicious intentions.

As you can see answering the question How do broker fees work in NYC. can be answered based on your personal circumstances. See if you should hire a real estate agent here

Written by: Dennis Denev. Real Estate news, stories and more